Kryptoin ICO Review – An ETF Index For The Cryptocurrency Market

Kryptoin is envisioned as a blockchain ETF platform that allows users to create and track their own ETF tokens and indices.

Their team is building a platform to disrupt the electronic traded funds industry commonly known as ETFs.

According to them, ETFs are among the most preferred investment vehicles and now rival common equities in various sectors.

They give an example of $5 trillion in funds traded using ETFs in January 2018 to show the industry's growth in recent times.

Despite the potential of ETFs, the Kryptoin team believes that the industry is yet to be fully exploited, and this explains why they are creating the first of its kind decentralized platform targeting the industry.

They add that their platform is unique, the reason they are patenting it.

At the heart of the project is the Kryptoin ETF token, KRP. They intend to use it to simplify and lower the risks associated with financial vehicles.

The company says that the token will function in a way similar to that of an ETF that's traded in a stock exchange, only that theirs are transparent and secure.

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With their solution, they are opening up the ETF market for asset managers and individuals to create and track their own ETF tokens from a variety of currencies and cryptocurrencies based on smart contracts.

Their solution is complex and requires them to integrate many blockchains. For this reason, they have announced a public sale of tokens on November 1, 2018.

Project Use Case

Kryptoin's white paper gives us an overview of the project, including how it works and its chances of success.

The first thing they seek to introduce is the cryptocurrency ETF token, the first of its kind in the ETF industry.

The company is also introducing a lot of tools and features that will simplify the process of creating and tracking of ETF tokens.

Their solution will feature an ETF creation unit to be known as Kryptoin basket.

This allows users to not only create tokens but also to choose a basket of tokens in desired proportions.

The creation unit also allows users to program their own tokens and create their own indices.

According to their white paper, baskets will be made using smart contracts.

These will allow users to create decentralized assets that they can invest in.

The team plans to introduce distinctive features like an index and creation unit compositors.

Using the two features, users will be able to select the ETFs that are most interesting to them. Notably, their tokens are backed by real currencies.

The team accepts that the blockchain provides them with an immutable and transparent platform that enables them to roll out ETF tokens in a traceable way.

To make sure that the ETF system always matches the reserves, they say that their platform will be subjected to periodic audits by professional third-party audit firms.

They are adding the following components on their platform; five user levels with defined roles, ability of composing an index, ability of assembling a creation unit, a trading desk and a token smart contract integrator.

Their goal is to simplify and to lower the risks associated with financial vehicles and cryptocurrencies.

They say their project stands out because it's the first digital currency ETF that's integrated with exchanges. It's already operating five indices.

Kryptoin Team Overview

The Kryptoin white paper mentions eight team members and advisors who are in charge of the project.

These include Donnie Kim, the founder and CEO of Kryptoin and Vincent Tyagi, a senior blockchain engineer.

Others include Surendra K, a senior platform engineer, and Jim Hong, an analyst and advisor.

Their white paper doesn't seem to give extensive details of the team members' credentials though.

How The Token Works

The Kryptoin ETF token, KRP is the backbone of the entire ecosystem. It's basically the token that seeds the ecosystem activities as well as the tradeable KRYP token.

After the token sale event, all KRP tokens will be converted into KRYP tokens in a ratio of 1:1.

KRYP tokens are traded in the Kryptoin Trading Desk and can be exchanged in digital exchanges.

They have created 1,798,043 KRP tokens and intend to sell about 60% of these through the crowdsales, using the 'Dutch Auction' method.

At the end of the token distribution event, KRYP tokens are hoping to be listed on a number of exchanges, including Okex, Binance, Bitfinex, Poloniex, Tidex. Bittrex, Gate.io, and Kucoin.

If the project hits its funding target, the team plans to use the funds to expand the ecosystem, starting with the creation of the second, third and specialty indices and an enhanced trading desk.

They will deploy all unspent funds into platform development, marketing, bounty programs, advisors and incentives for strategic partners as shown here.

What Do Investors Gain

Investors hope that the value of tokens goes up as the project gains traction.

With the Kryptoin project, this is a possibility. They already have a working product.

The team is using the 'Dutch Auction' model to distribute their tokens. This means that the value of tokens is not static and could change after the token sale event.

They also say that the value of KRYP tokens listed on exchanges will depend on the NAV of that index.

As the value of tokens goes up, investors stand a chance to cash in from their investment.

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Opportunities & Risks

When we look at the ETF market, it's growing at an incredible rate. The white paper mentions that there were over 1,800 ETFs in the US in 2015 and 4,400 ETFs globally, worth $2 trillion.

With the increase in information about financial vehicles, ETFs could continue on their growth trajectory and Kryptoin could become a leading player in this space.

If we look at risks, most investment are prone to risks and this also applies to Kryptoin.

Their white paper notes that the project faces two major risks; systemic and financial risks.

They say if a large-scale hack is carried out on the underlying Ethereum platform, the project could be wiped out completely.

The team also acknowledges that so many ETFs close down every year, mainly because of limited resources.

They also accept that there could be competing companies like Idex and Iconomi which provide asset management services.

To counter any future competition, they plan to introduce artificial intelligence into their solutions to make it stand out.

Final Thoughts

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After looking at the details of the Kryptoin project, it's safe to say that this seems interesting and potentially revolutionary for the lucrative ETF market.

Their team looks set to carry out the project, given its experience in the blockchain.

They also understand they will need to integrate their product with a number of blockchains and exchanges, an expensive affair.

That said, there are some inherent dangers that could negatively affect the progress of this project.

As their white paper notes, system risks like a widespread hack on the underlying Ethereum platform could spell doom. On the bright side, we can see they have a lot going for them, including a great team, a solid vision, a practical idea and a receptive market.

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